Wednesday, February 14, 2018

Gary Shilling: India VS China economy

Gary Shilling praises India as having good long term prospects, even more so than China.

"One that we’ve been very optimistic about is India, though it’s better known today than it was six years ago, when we first got enthusiastic about it. I wrote a report back then that India was a better bet in the long run than China. It’s a long-term play and still has a lot to go.

It has a lot of advantages: It’s a democracy, albeit a messy one — there’s a lot of graft and corruption — but it’s a democracy. China is a top-down dictatorship and is becoming more so. The world is pretty much saturated with manufactured goods now; and as economies grow, a greater portion of spending is on services. India is much more into services — software and so on. They’ve got a knack for it. And India has large private corporations. In China, they’re basically state-controlled and very inefficient."